There is no question that the first five months of the Trump administration with a Republican majority in both the U.S. House of Representatives and the U.S. Senate has not turned out the way most people thought it would. Over the last several weeks, and during visits with NACD members at industry events and regional meetings, the number one question I receive is “What the heck is going on in Washington?” As with everything in DC, the answer is complicated.
Health care reform has been a bumpy ride to say the least. One failed attempt to pass a bill this past spring in the House ultimately resulted in the chamber approving a revised measure a few weeks later by the slimmest of margins, 217-213. (See NACD’s position on healthcare reform). A small group of Senate Republicans worked behind closed doors for several weeks and introduced the Senate version of health care reform last week that immediately drew “no” votes from 5 Senate Republicans, placing approval of the bill in jeopardy with the chamber scheduled to consider the measure this week. The association health plan that was approved in the House, and that the association continues to push for introduction in the Senate, is still pending with the hope that a measure will be offered sometime this summer.
Tax reform continues to be the other top issue that both the White House and Congress want to pass with the target being this summer or early fall. The House has discussed a blueprint that would reduce the corporate income tax rate from 35 percent to 20 percent, eliminate the corporate alternative minimum tax, tax income derived from pass-through businesses at a maximum rate of 25 percent, repeal the estate tax, preserve the LIFO method of accounting, and allow full and immediate expensing for investments. Of concern to NACD members, the proposal includes a “Border Adjustment Tax” that will effectively tax imports.
Infrastructure reform, which could be packaged with tax reform, is also a big-ticket agenda item for this administration that is not likely to be considered until this fall.
And regulatory reform, the number one legislative and regulatory issue for NACD members based on recent surveys, remains a priority for this administration and Congress with a number of bills being introduced but no clear timeline of consideration.
While the wheels are moving on all four issues, Congress must also raise the debt ceiling as well as approve a budget by Sept. 30 to continue funding the federal government. The hope at the beginning of this administration was that health care and tax reform would be approved within this president’s first 100 days knowing that Congress had to grapple with raising the debt ceiling and the annual budget and appropriations process. That obviously has not been the case with the Russia scandal and other daily drama confronting this administration essentially taking the wind out of the sails of any meaningful push to approve the major issues listed above.
While I realize that these developments have been incredibly frustrating to most of NACD’s members, the best thing that we as an association and industry can do is stay the course and continue to work with Congress and this administration to ensure that our legislative priorities are known and considered when any of these of bills finally reach the House and/or Senate floors.
As evidenced by another widely successful Washington Fly-In this past May, NACD and our members clearly see opportunities to secure much needed reform on health care, taxes and in the regulatory arena.